Location Suitability Studies for Foreign Investors in India

In deciding where to establish a business, location is one of the rocks that form the foundation of well-established business, particularly to foreign investors who are venturing into a highly complex and diversified market such as India. It has enormous opportunities in India and on a sectoral basis, but each state is a different situation of possibilities and challenges. One of the worst decisions to make is the coordination of the location which can lead to increased expenses, inefficiencies and operation, regulatory barriers and out-right project failure.

We provide a comprehensive Location Suitability Study in CERTILIZE where foreign investors would like to open manufacturing plants, logistic, and service facilities or Research and Development centres in India. Using research-driven data, interviews in the industry, and bag-to-bag contact with industrial authorities at the state levels helps us come up with reports that you can use in your decision making, as a confident and strategic thinker.

Value of Location Suitability in India

The states in India differ considerably in the following ways:

• Business incentives
• Infrastructure preparedness
• Availability of labor laws
• Utility and logistics cost
• Clearances and norms on the environment
• Efficiency in politics and administration

Depending on the district one may find an enormous difference in opportunity even within a single state. Our Location Suitability Study prompts you to stay out of the trap of choosing a site that fits in with your business needs, regulatory requirements and expansion needs.

What our Location suitability studies involve

Comparative Industry Policy & Incentive

Our judgments and comparison of the policies of the industrials promotion of various states include:

• Industry subsidies
• Stamp duty waiver and SGST refunds
• Availability of plug-and-play infrastructure
• Facility of approvals and land allocation

Price and Supply of land

We examine the availability of the industrial land in:

• State Industrial Development Corporations (e.g. GIDC, RIICO, APIIC)
• Special economic zones (SEZs)
• Industrial parks which are privately owned
• Housing price, rental of the land, land property regulations

Quality and Connectivity

• Close proximity to highways, ports, airports and railheads
• Reliability of water and power supply
• Reliability of water power supply
• Infrastructure: digital, internet connectivity
• Drainage and waste water systems

Labor Market Appraisal

• Skill level availability of labor
• Regional costs of labor and wages patterns
• Attrition and mobility
• Industrial training institute (ITIs) and vocational training institutions

Supply Chain, Logistics Assessment

• Nearness to supplier of raw materials and sources of raw materials
• Last mile connection
• Warehouse clusters and cold chain infra that exist

Regulatory, Legal Environment

• Regulations by the pollution control board (CPCB/ SPCB)
• The compliance with Factory Acts
• City and fire hazard permits
• Single-window clearance efficiency

Local Ecosystem analysis

• Marginal industries
• Academic and R&D organisations
• Staging areas of like industries
• Existence of your direct/indirect rivals

Socio-Political Factors & Environmental Factors

• Business friendly and political stability
• Community participation and community feeling
• SEIAA/ EIA feasibility
• Risk of the natural disaster (flood, drought, seismic zone)

Methodology

We are consultative and client specific:

• Initial Consultation – Learn all about your industry, capacity plan, labor requirements, compliance requirements and CAPEX/OPEX goals.
• Macro Shortlisting – states shortlisting using major business filters.
• Micro Location Study- District/city level study of those states shortlisted.
• Scoring & Ranking-Weighted scorecards on location benchmarking.
• Decision Report – Provision of a detailed presentation, heat maps and recommendations of location.
• Optional Field Visits – Field check, taking photos and meeting personnel.

Deliverables

• Detailed report and executive summary of 1500+ words
• Scoring matrix and dashboards location
• Table of comparisons between industrial parks
• Logistics maps and GIS heat maps
• Applicability chart of incentives
• Per-location licensing and legal highlights

Great Advantages of Our Location Suitability Studies

• Reduced Set up Costs: Choose the most favorable land and labor economics sites.
• Fast approvals: Select lands that are pre-zoned industrial land with fast-track licences.
• Logistics Optimization: Reduce transportation expenses, and time by being near ports and places of consumption.
• Increased Productivity: Get high quality labour at affordable rates and low turnover rate.
• Optimized Incentives: Allow maximum incentives by way of subsidies and grants
• Quick Market Access: Be near to customer centers or distribution centers.
• Improved Risk Avoidance: Do not locate in politically unstable areas, disaster-prone locations or areas contaminated with a lot of pollution.
• Enhanced Scalability: Guarantee future land growth and infrastructures capacity.
• Time Saving: Save weeks of in-house researches with our expert knowledge.
• Regulatory Clarity: know all location-specific compliance factors prior to deciding upon them.

Foreign Investors in such sectors as:

• Automobile & Electric Vehicle Part Makers
• Electronics & Semiconductors
• Food Processing
• Pharmaceutical and Biotech
• FMCG & Consumer Durables
• Chemical and Paints
• Solar, Wind, Battery, Renewable Energy
• Steel, glass and metal fabrication
• Textile & Apparel
• Waste Management & Recycling

Sample Location Comparisons